Question

1. By deciding to move the manufacturing to New York, Helena displays her rational decision making skills. Which of the following is not one of the steps in the rational decision making process?

a.Implement the chosen alternative

b.Recognize and define the decision situation

c.Search for alternatives until one is found that meets a minimum standard of sufficiency

d.Follow up and evaluate results

2. Helena uses available information but sometimes she has to “go with her gut.” Helena is decision making under:

a.A state of certainty

b.A state of uncertainty

c.A state of ambiguity

d.A state of risk

Herbert A. Simon and his administrative model looks more at how decisions are made rather than how to make decisions. Helena appears to make decisions in a very similar fashion to how the model describes decision-making. Which of the following is not one of the behavioral conditions in the administrative model?

a.Managers are constrained by bounded rationality

b.Managers use incomplete and imperfect information

c.Managers tend to ‘satisfice’ when making decisions

d.Managers are impacted by political forces when making decisions

Answer 1

1. Follow up and evaluate results is not one of the step in rational decision making process. (option D)

Other than this all the given options are steps of ration al decision making process.

2. “Go with gut feeling” in decision making is a state of uncertainty. Sometimes gut feelings can be wrong or right. We can’t decide whether they are true or false but when result came we come to know. (option B)
3. Managers are constrained by bounded rationality. Managers are likely to consider limited number of available option before making decisions and as a result they choose first good enough solution. (option A)